What is an Entrepreneur: Concept, Definition or Meaning of the Term
Do you have doubts about what an entrepreneur is? Possibly you are one and you don’t know it! Let’s try to clarify the true meaning of this term, which has become a very fashionable word, giving a sufficiently understandable definition to make the concept quite clear.
Personally, I consider myself an entrepreneur, and that makes a lot of sense since we are living from a certain undertaking. We will try to make a brief presentation on the subject, explaining in a few words what it consists of, giving some examples and at the end, we will give you some valuable recommendations to really be a successful entrepreneur.
Who do we call an entrepreneur? What does this word mean?
The term entrepreneur comes from the French entrepreneur, it is commonly used to refer to an individual who organizes and operates one or more companies, assuming a certain financial risk in the said venture.
The concept was first defined by the Anglo-French economist Richard Cantillon as “the person who pays a certain price to resell a product at an uncertain price, thereby making decisions about obtaining and using resources, and consequently admitting risk in entrepreneurship “.
Other scholars have defined this term in different ways, including:
An entrepreneur is an economic agent who unites all the means of production, the land of one, the labour of another and the capital of a third, and produces a product. By selling a product in the market, he pays the rent on the land, the salary of his employees, interest on the capital and his profit is the remainder. It exchanges economic resources from an area of low productivity to an area of high productivity and high performance.
Entrepreneurs are innovators who seek to destroy the status quo of existing products and services to create new products and services.
In 1964 by Peter Druker: An entrepreneur seeks change, responds to it and exploits its opportunities. Innovation is a specific tool of an entrepreneur, therefore the effective entrepreneur turns a source into a resource.
In 1975 by Howard Stevenson: Entrepreneurship is the search for opportunities regardless of the initially controlled resources.
The etymology of the Entrepreneurship Concept: Its Origin
The term entrepreneur derives from the Spanish word undertake, which comes from the Latin, take or take, originally applied (both in Spain and in other countries) to those who were then considered adventurers, mainly military, a term that later came to have commercial connotations.
The word was defined for the first time in the Dictionary of Authorities of 1732, still with that connotation, as: “The person who undertakes and is determined to do and execute, with resolution and determination, some considerable and arduous operation”. He is also described as “an effortless and enterprising Lord of remarkable feats, like his father.”
This meaning and evolution are closely related to the French word entrepreneur, which appears at the beginning of the 16th century. Later, in the early 18th century, the French extended the meaning of the term to bridge and road builders and architects.
Among the benefits of the entrepreneurial spirit we can mention the following:
1- Create technologies.
2- Increase the rate of SMEs.
3- Increase productivity.
4- Promotes economic growth.
5- It encourages competition in the markets.
An entrepreneur is also called the person who equally undertakes the creation of other types of organizations or institutions not necessarily commercial, such as civic, social or political. This is because the act of undertaking itself is not only characteristic of the world of business or commerce, but it is transversal to the society of the 21st century.
A “mixed” case is that of the entrepreneur or social enterprise that seeks to generate economic benefits while having a developed focus on enhancing human well-being that transcends the economic and also benefits society as a whole.
Agorism is a form of anarchism that poses entrepreneurs as the emerging social class, the entrepreneur, within a dynamic economy, free of obstacles or free market, in a voluntary political order or anarchy. For this political doctrine, the rise of entrepreneurs would be typical of a network economy, a popular market and radical owners.
Recommendations to be a good entrepreneur
The time has come for the key guidelines or tips to certainly be a good entrepreneur, but first I invite you to complement our previous publication on what an entrepreneur is. The recommendations that we have for you on this day are the following:
1- That you are passionate
It is important to carry out an undertaking that is something that we are truly passionate about since this is a great advantage when difficult times come. Knowing that risks are taken and certain sacrifices are possible, it is vitally important to have a love for the work you undertake.
2- Have the potential
Each person must do a self-analysis and in the most objective way possible to determine if they really have the capacities to develop and get the task they have decided to undertake on the right track.
3- Being able to finance the project
On many occasions, it will be necessary to have a large sum of money to finance a certain undertaking. Whether you have the capital or the facility to get it (sources of financing) it is obvious that it is an element to take into account.
4- Specialize in the subject
It always gives good results to know everything you need about the business or the x activity in which we are thinking of carrying out our undertaking. In these modern times, no one doubts the advantage of training and being up-to-date on relevant topics to be successful as an entrepreneur.
5-Research and innovation
Research is essential to have the information that allows us to make the best decisions or the creation of strategies that allow us to achieve our profit objectives. In the same way, we can bring innovative proposals to satisfy an unmet need.
6- Define objectives and goals
When we have already carried out all the studies or investigations, it is time to set the short, medium and long-term objectives. These objectives can be achieved in a staggered manner by meeting certain goals in a clearly defined time, but for this, it is necessary to comply with the next point (develop a plan).
7- Make and execute a plan
Have you already defined an undertaking that you are really passionate about? Do you know that you have the personal qualities to bring it up? Have you become an expert or kind of guru on the subject? Can you finance it? Do you have innovative ideas and have you set yourself certain goals? Well, it’s time to create a plan and put it into action!
In summary: An entrepreneur is one who has the decision and initiative to carry out actions that are difficult or involve some risk. The truth is that there are many types of entrepreneurship and each person is responsible for choosing well if they really want to be successful by unleashing their entrepreneurial spirit.